Hollo John,
if the company buy Interlectual property for a period of 5 years and they used straight line method to amortize the cost. At the end of 5 yrs period, can I re value the IP and carry on amortizing the valuation amount based on the est. remaining life of the IP?
If I borrowed the money to pay the IP.
I thought I can capitalize the interest if I have not paid any interest during the 5 Year period for the loan even when the loan was agreed on nil interest rate from the lender.
Thanks for your advise.
Sue
Ask the Tutor ACCA AFM
IP
13y ago#1To be honest, I really do not know! This is really a P2 question (it is not relevant for P4) and I therefore think you will be better posting it in the P2 Ask the Tutor forum. The P2 tutor should know the answer :-)
Thanks for your reply, :)
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